Import letters of credit

A secure way to pay your suppliers

  • Payment to your supplier is secured, provided they conform to the terms you’ve specified
  • Make payments of any value in any freely traded currency
  • Gives you the opportunity to negotiate the terms of trade - especially valuable with new suppliers

With a letter of credit, you can pay for the goods you import while covering your trading risks.

How import letters can help your business

Import letters of credit give you an extra cover and control so you get exactly what you need, when you need it. You’ll know that your seller can claim payment only if they comply with all the terms in the letter of credit.

Gives you more control

Payment is only made against documents you specify – an advantage when dealing with new suppliers. We’ll explain which documents to ask for and how to word the terms.

Enhances your bargaining position

You could negotiate longer periods and reduce costs on the basis of the benefits your supplier gains when you use letters of credit.

Improves your competitive status

Suppliers know that banks will only issue letters of credit on behalf of creditworthy customers, which can raise your competitive position.

How it works

We can issue a Letter of Credit on your behalf to provide a secure means of payment to your overseas suppliers. The beneficiary of the Letter of Credit, your supplier, will only receive payment if they present documents that comply exactly with the terms and conditions of the Letter of Credit.

Depending on the agreed terms, these documents might include a bill of exchange, bill of lading or air waybill, invoice, insurance policy and certificate of origin.

Find an International Manager

Our team of International Managers covers the UK, providing businesses with expert support and guidance on trading overseas.

Other services that may interest you

Make and receive secure payments around the world

A collection is a simple and efficient tool for settling your trade debts. It can be used to make payments of any size and in any freely traded currency.

What you need to know about importing

From cost savings to competitive advantages, here are 5 reasons why importing could be a good idea.

Everything you need to take your business worldwide

Get free insights into local markets and save on costs with exclusive discounts. Plus, tools and services designed to keep your business banking quick and easy.